Glossary: Key Terms for Understanding Accelerator and Incubator Programs
Accelerator and incubator programs come with their own vocabulary, and it’s easy to nod along in a meeting without actually knowing what a term means. This glossary covers the terms you’ll run into most often while researching programs on Tvarakk — kept short and plain, on purpose.
A
Accelerator — A structured, time-boxed program (typically 3–6 months) that helps existing startups grow quickly through mentorship, curriculum, and investor connections, usually in exchange for a small equity stake.
C
Cohort — The group of startups that go through a program together at the same time. Programs typically run cohorts on a recurring schedule (e.g., twice a year).
D
Demo Day— The public pitch event at the end of an accelerator program, where startups present to investors, press, and other guests — often the main opportunity to raise a follow-on round.
E
Equity — Ownership in a company. When a program is “equity-based,” it means the program receives a small ownership percentage in exchange for the funding and support it provides.
F
Follow-on funding — Additional investment raised after an initial round — for example, the round a startup raises after finishing an accelerator, often from investors it met during the program.
I
Incubator — A longer, more flexible program that supports founders earlier in their journey — sometimes before a full team or product exists — typically without requiring equity in return.
M
Mentor network — The pool of experienced founders, operators, or investors a program connects participants with for advice and introductions during (and often after) the program.
N
Non-dilutive funding — Money — a grant, prize, or program funding — given to a startup without taking any ownership stake in return.
S
SAFE (Simple Agreement for Future Equity) — A common early-stage funding instrument that isn’t a loan and isn’t a priced equity round — it converts into equity later, usually at a future financing round, at agreed terms.
Seed stage — The earliest formal funding stage for a startup, typically used to validate a product and reach initial traction before a larger “Series A” round.
T
Term sheet — A non-binding document outlining the proposed terms of an investment — amount, valuation, equity percentage, and key conditions — before a final legal agreement is signed.
V
Venture studio / Startup studio — A model where the studio itself originates the business idea, assembles the founding team, and funds the company from inception, rather than accepting outside founders with their own idea.
Come across a term on a program page that isn’t explained here? Let us know — this glossary grows as the database does.
Have a correction or addition? Report it here via Contact Us — Tvarakk is built on continuously verified data, and reader input helps keep it accurate.